Net income climbed 24 percent to $699 million, or $1.28 a
share, from $565 million, or 90 cents, a year earlier, the El
Segundo, California-based company said today in a statement.
Analysts had predicted earnings of about $1 a share on average,
according to data compiled by Bloomberg. Sales rose 6.3 percent
to $7.88 billion, topping the $7.84 billion estimate.

Higher average revenue per user in the U.S. helped fuel
sales last quarter, DirecTV said. The ARPU figure climbed 6
percent to $102.37 in the period, and the company lowered its
rate of churn -- the percentage of customers who leave the
service. Customers are paying more for premium TV packages,
enhanced warranties and pay-per-view shows.

“It shows they have a very solid position at the high end
of the market, with a better product and a better subscriber
base,” said Todd Mitchell, an analyst at Brean Capital LLC in
New York. “That insulates them a little bit from the churn you
get in promotional subscriptions.”

While the 139,000 gain in U.S. subscribers last quarter was
the most since 2011, DirecTV showed signs of slowing in Latin
America -- a region seen as the company’s biggest growth
opportunity. The 260,000 subscribers added in Latin America fell
short of estimates as competition mounts, Adam Ilkowitz, an
analyst at Nomura Equity Research, said in a note to clients.

DirecTV shares slid 1.3 percent to $63.53 at the close in
New York. The stock had gained 27 percent this year.